Benefits of Title Insurance

Title insurance issued by Old Republic Title provides a broad range of
benefits to the parties involved in a real estate transaction.

To the Purchaser of Real Estate…

The purchaser of real estate needs protection against serious financial
loss due to a defect in the title to the property purchased. For a single,
one-time premium, which is a modest amount in relationship to the value of the
property, a buyer can receive the protection of a title insurance policy - a
policy that is backed by the reserves and solvency of the Company. A title
insurance policy will cover both claims arising out of title problems that
could have been discovered in the public records, and those so-called
"non-record" defects that could not be discovered in the record, even with the
most complete search.

A title insurance policy will not only protect the insured owner, but also
that person’s heirs for as long as they hold title to the property, and even
after they sell by warranty deed. The Company will not only satisfy any valid
claim made against the insured’s title, but it will pay for the costs and
legal expenses of defending against a title claim.

To the Lender…

The overwhelming majority of mortgage loans made in the United States are
made by persons who are acting in a fiduciary capacity - by savings and loan
associations, savings banks, and commercial banks on behalf of their
depositors, and by life insurance companies on behalf of their policyholders.
Because they are lending other people’s money (other people’s savings or
policyholder’s funds) these lenders must be concerned with the safety of their
mortgage investments.

A policy of title insurance provides a mortgage lender with a high degree
of safety against the loss of security as a result of a title problem. This
protection remains in effect for as long as the mortgage remains
unsatisfied.

Old Republic Title also provides lenders with in-depth expertise on a wide
variety of title related matters to facilitate the mortgage loan process.

To the Seller…

An owner of real property whose interest is insured by an owner’s title
insurance policy has the assurance that the title will be marketable when
selling the property. The title insurance policy protects the seller from
financial damage if the seller’s title is rejected by a prospective purchaser.
Also, when the seller conveys with "warranties," the seller is still protected
if the buyer sues because of a breach of those warranties.

To the Real Estate Attorney…

Title insurance enables the real estate attorney to provide the client with
substantially greater protection than would be afforded by the attorney’s
opinion alone. The attorney’s opinion is generally limited to recorded matters
and the client can only recover from the attorney if the attorney is found to
be negligent. (Remember the case of Watson v. Muirhead that prompted the
creation of title insurance?)

To the Real Estate Broker…

The title insurance company and the real estate agent both seek to ensure
that as many purchases as possible are closed to the satisfaction of all the
principals in the transaction. From the broker’s standpoint, the efficient and
safe transfer of title will result in client satisfaction, increased prestige,
and continued business.

Apart from the security that title insurance offers, most brokers have
experienced numerous instances in which title insurance personnel have enabled
them to close transactions that otherwise would have been delayed. By helping
to avoid delays, Old Republic Title is able to facilitate the job of the real
estate broker and to minimize the inconveniences and costs to the
homebuyer.

To the Home Builder…

By providing various title insurance services and information to the home
builder, the title insurance industry can and does assist the builder in
identifying and evaluating building and use restrictions, easements, etc., in
removing title problems that may arise, and in facilitating prompt and needed
disbursement of construction funds from the construction lender. All of these
services ultimately rebound to the benefit of the buyers of newly constructed
homes.

To the Community In General…

Apart from the unique benefits title insurance offers to particular parties
interested in a real estate transaction, title insurance companies can and do
offer considerable assistance to public officials through the use of their
"title plants" - the data banks of reorganized and indexed public records that
are maintained by the Company in many areas of the country.

Much of the information contained in title plants is not readily available
from other sources. This fund of information about the date of recent sales,
representative sale prices, ownerships, area maps, use restrictions,
surrounding properties, and a host of other matters pertinent to proposed
projects, has helped representatives from all levels of government save
countless hours and taxpayer dollars. In addition, title plant people
frequently help recording officers correct errors they discover in public
indices and records.